10985 CONTINUES TO BE UPSIDE TARGET; 10800 IMMEDIATE SUPPORT

10985 CONTINUES TO BE UPSIDE TARGET; 10800 IMMEDIATE SUPPORT

WORLD MARKETS

Dow climbed 0.6% while S & P 500 and Nasdaq rose 0.2% each, on the back of strong quarterly earnings from major banks like Goldman Sachs and Bank of America.

Goldman Sachs posted blowout quarterly earnings, sending the stock up 10%, its biggest one-day gain since 2009. Bank of America rose 7% after reporting a record quarterly profit.

US oil rose 20 cents to $52.31 while Brent added 68 cents or 1.1% to $61.32 a barrel.

European markets, except 0.5% lower FTSE, gained 0.4%-1.6% with Italy on the top. Consumer prices in Britain rose at an annual pace of 2.1% in December, slipping from 2.3% in November and marking the lowest level in nearly two years.

The U.K. government led by Prime Minister Theresa May survived a vote of no-confidence yesterday.

AT HOME

It was a day of consolidation as benchmark indices ended flat after trading in a narrow range through the session. Sensex settled at 36321, up 3 points while Nifty added 3 points to finish at 10890. BSE mid-cap index ended flat while small-cap index gained 0.1%. BSE Oil & Gas and IT indices gained 0.7% and 0.6% respectively, becoming top gainers among the sectoral indices while Telecom index fell 0.8%, becoming top loser, followed by 0.7% lower FMCG and Metal indices.

FIIs net bought stocks and stock futures worth Rs 160 cr and 171 cr respectively but net sold index futures worth Rs 818 cr. DIIs were net buyers to the tune of Rs 417 cr.

Rupee depreciated 20 paise to end at 71.24/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.6%. SGX Nifty is suggesting about 20 points higher start for our market.

Readers would recall that we had given upside targets of 10870, followed by 10985, after immediate hurdle of 10800 was taken out.

Yesterday, Nifty, after touching a high of 10928, retreated to close at 10890, but is set to open above 10900 today.

10985 continues to be upside target/resistance to eye.

10800 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

Reliance Industries and HUL will report their quarterly earnings today.